I Tried Day Trading for 1 Week (Complete Beginner)

I Tried Day Trading for 1 Week (Complete Beginner)
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After just one week of day trading stock options as a complete beginner, I managed to make a profit. Despite having never day traded before, I was intrigued by the allure of extravagant gains and the risky nature of this venture. I couldn’t ignore the Lamborghinis, diamonds, and the notorious stories of those on Wall Street Bets who lost their homes.

As a complete novice with no prior knowledge of stock options, I decided to put this day trading endeavor to the test. It was Monday, the stock market opening at midnight in Australia, giving me approximately 8 hours to grasp the basics of stock options, learn how to trade them, and deposit $2500 into a day trading account.

Acknowledging my lack of expertise, I opted to follow calls and signals from experienced traders in Discord groups. Being part of these communities provided me with insights and recommendations, as attempting this solo seemed like a surefire way to lose my investment.

To add an element of excitement, I pledged to give away $100 to a viewer if, by the end of the week, I hadn’t made any profit. As I embarked on this journey, it was clear that trading stock options involved higher risks compared to traditional stock trading. The price of an option could move significantly with even a small shift in the stock price, offering the potential for substantial gains or losses.

For instance, if I anticipated Tesla’s price would rise, I could buy a call option for Tesla. If the price indeed increased, the value of the call option would surge. However, my understanding of day trading was minimal, and my explanations might not resonate with seasoned traders.

Market Opening Approached

As market opening approached, I realized I needed to fund my account promptly. I secured $2500 USD, but a time zone mistake caused me to miss out on a lucrative Tesla play within the first hour of market opening. Despite this setback, I remained determined and looked forward to the opportunities the following day.

On the second day, equipped with around $2515, I joined a Discord live trading call from NetzTrades before market open. This time, I was more vigilant and ready to act on signals. However, an initial blunder with setting up my account prevented me from executing a potentially loss-inducing trade. Fortunately, the price of Tesla took an unexpected dip, sparing me from a significant loss.

Later, I successfully entered a Tesla call trade, experiencing the nerves of having a substantial amount at stake. The trade yielded a small profit, but I couldn’t help but reflect on a missed opportunity for greater gains if I had held a bit longer.

Towards the end of the day, I engaged in another Tesla call trade that proved to be quite volatile. Initially down by $200, the market reversed, and I managed to secure a profit of $277. The adrenaline rush was intense, and with the account reaching $2800, I felt a mix of exhaustion and accomplishment.

Entering the third day, I found myself keenly observing the Discord for potential plays. However, the group seemed cautious, opting to hold off on trading due to anticipated market volatility. This emphasis on caution hinted at challenges that beginners like me might face when it comes to exercising restraint in the face of potential risks.

As I approached the fourth day of trading, the learning curve remained steep, and the experiences of gains and near-misses fueled my determination to navigate the unpredictable world of day trading stock options.

Making Any Trades

Having refrained from making any trades, I found myself in bed, tired and reluctant. However, when a trading signal pinged on my phone, I succumbed to the temptation and took the signal, despite being a beginner. It was a call for the S&P 500, priced at $3.18 each. Ignoring my better judgment, I bought four of them, investing around $1200-$1300. Almost immediately, I faced an $80 loss, and the market failed to move in the anticipated direction. Eventually, I closed the trade, resulting in a loss of -$300. The disappointment was palpable, and the account was back to its starting point at $2500, erasing the gains from the previous day.

Undeterred, I aimed to rebound on the following day, the penultimate day of the challenge. As the trading session commenced, it started slowly, but after 40 minutes, I received a signal for a Tesla call. Despite my earlier struggles with Tesla calls, I bought one for approximately $1460. Initially, I was up by $130, and the temptation to secure the gains was strong. However, I opted to hold, witnessing the value fluctuate from positive to negative. Eventually, I closed the position, making a modest profit after a nerve-wracking experience.

Tesla Call

Later in the day, I bought another Tesla call for $850, influenced by the group’s belief in an impending reversal. This decision increased my total investment to around $2200, almost the entire account. Unfortunately, the market did not align with our expectations, resulting in a total loss of -$500 for the day—the worst trading day of the challenge. The account dwindled to around $1900, a considerable setback.

Approaching the final day, I acknowledged the slim chances of restoring the account to $2500. Nevertheless, my primary goal was to end the day with a profit. The day started with a signal for an S&P 500 call, priced at $1.03 each. Despite facing an initial dip and being down -$130, the market eventually recovered. I sold for a profit, ending the day with a modest gain of $44.

Reflecting on the week, the account experienced an overall loss of approximately -$450. Notably, I often sold at the lowest points in my trades, missing out on potential profits. Despite these challenges, I kept my promise and announced that I would be sending $100 to a viewer. To participate, viewers were instructed to leave a comment on the video, take a screenshot, and DM it to me on Instagram. In conclusion, I contemplated the possibility of extending the challenge to a month, considering the unpredictable nature of the market. If viewers expressed interest in such an extended challenge, I would consider undertaking it.

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